IPM Debt Facility (IFC-41382)

Countries
  • South Africa
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 31, 2019
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
INCA PORTFOLIO MANAGERS (PTY) LTD
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 26, 2019

Disclosed by Bank May 24, 2019

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank documents, the proposed project is an investment in INCA Portfolio Manager's (“IPM”) Infrastructure Debt Facility, a debt facility that is being set up to on-lend to creditworthy secondary municipalities in South Africa. The Facility aims to enable access to commercial finance for creditworthy secondary cities in RSA, where more than 80% of municipal financing is directed towards only 8 large metropolitan municipalities (out of over 200 municipalities in RSA). In addition, the Facility is expected to be supported by a capacity building fund separately funded by the Switzerland State Secretariat for Economic Affairs, which will support these municipalities in prioritizing investment needs and in preparing bankable proposals for commercial financing. This would enable access to commercial financing for the municipalities to help them establish a borrowing track record and ultimately to reduce dependence on transfers from the national government..

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

(i) Stakeholder effects: The Facility will improve access to finance for secondary cities in South Africa with limited access to commercial debt. The Facility supports implementation of a portfolio of municipal infrastructure projects, and by leveraging the municipalities balance sheets, these municipalities can accelerate much needed infrastructure investments. Furthermore, the Facility will support projects that address climate change, with potential implications on access to urban infrastructure services.

(ii) Integration: The Project would mobilize capital for municipal finance, with the potential to engage new investors to the underserved secondary cities. Furthermore, IFC's engagement will create a demonstration effect, which is expected to mobilize greater commercial financing in future fund-raising efforts by these municipalities.

(iii) Resilience - By enabling secondary municipalities to establish a borrowing track record, the Project contributes to reducing dependence on government transfers for municipal infrastructure projects. The Facility will also provide technical assistance to build capacities of secondary municipalities, including in financial planning.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total size of the Facility is targeted to be R1.5 billion (approximately US$100 million). The proposed IFC investment is comprised of debt financing of up to R375 million (approximately US$25 million), on IFC’s own account ; (ii) financing of up to R375 million (approximately US$25 million) from IFC acting as implementing entity of the Canada-IFC Blended Climate Finance Program.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

IPM is a South-African based portfolio manager with experience in municipal debt and providing financial advisory services to municipalities in RSA. IPM is owned by Pan African Business Solutions (44%), Attie van Zyl (IPM CEO) (41%) and Joanne Poulter (IPM board member) (15%).

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - INCA Portfolio Managers Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

INCA Portfolio Managers Pty. Ltd. 
Attie van Zyl 
Chief Executive Officer 
+2783 701 2443 
attie.vanzyl@inca.co.za 
Unit F14, Pinewood Office Park Square, 33 Riley Road, Woodmead Ext 3, Sandton, P.O. Box 1847, Gallo Manor, 2052 
www.incaportfoliomanagers.co.za 

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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